Tags: Spartan Stores | Nash Finch | Food | Distributor

Spartan Stores to Buy Rival Food Distributor Nash Finch

Monday, 22 Jul 2013 08:35 AM

Spartan Stores Inc., the ninth-largest grocery distributor in the United States, will merge with Nash Finch Co. in a deal that gives it access to U.S. military stores at home and abroad.

The companies valued the all-stock deal at $1.3 billion, including debt at both. Spartan Stores shares rose 20 percent to $25.50 in premarket trading on Monday, while Nash Finch's shares were up 27 percent at $32.25.

Shareholders in Nash Finch, which derives about half of its sales from military-related businesses, will receive 1.20 shares of Spartan Stores for each share they own.

Editor's Note: Save, shop and invest like an insider! Our experts lead the way each month in The Franklin Prosperity Report. Click here to learn more.

Spartan was valued at $464 million as of Friday close, while Nash Finch had a market capitalization of $312 million.

On closing, shareholders of Spartan Stores will own about 57.7 percent of the combined company, while Nash Finch shareholders will hold about 42.3 percent.

The merger comes within a month of Kroger Co buying regional grocer Harris Teeter Supermarkets Inc in a $2.5 billion deal.

Military commissaries sell groceries and household goods to personnel and retirees at cheaper prices, while exchanges are retail stores operating on military installations and also include other services such as barbershops and fast food outlets.

Spartan supplies to about 390 independent grocery outlets in Michigan, Indiana and Ohio, and has 102 owned stores in Michigan.

The merger is expected to save about $50 million annually by the third year, and start adding to adjusted earnings within the first full fiscal year, the companies said.

Amazon.com Inc, in June, had also unveiled a new version of its successful Prime shipping service to attract more frequent shoppers with groceries and other everyday household products.

Moelis & Co. gave financial advice to Spartan Stores, while Nash Finch's financial adviser was J.P. Morgan Securities Inc. Warner Norcross & Judd LLP was legal counsel for Spartan Stores and Nash Finch's legal adviser was Morgan, Lewis & Bockius LLP.

Editor's Note: Save, shop and invest like an insider! Our experts lead the way each month in The Franklin Prosperity Report. Click here to learn more.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Companies
U.S. food distributors Spartan Stores Inc and Nash Finch Co said they will merge in an all-stock deal valued at $1.30 billion including debt to expand their geographic reach.
Spartan Stores,Nash Finch,Food,Distributor
364
2013-35-22
Monday, 22 Jul 2013 08:35 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved